The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-14
THE LOSSES PILING UP.
KENNEDY'S DEFICIT GREATER
THAN WAS SUPPOSED.

Known-The EX-TreaSurer ProStrat-
ed By the Exposure of His Conduct
Heavy Decline in the Stock of the
Association.
The announcement that Daniel R. Ken
hedy was short in his accounts with the
Jasper Mutual Loan Association was start
ling TO the community. and it has been the
talk of the town ever since it was made
Everyone has been inquiring for the further
details Of the matter, but there were few to
be had, for the report made to the meeting
Friday night embraced all that the committee
that began the examination of the books
knew. Everyone seems anxious to know
everything concerning the deficit for all are
loath to believe that Mr.. Kennedy, who has
stood so well, has dishonesty perverted the
money of the association to his own use,
and upon that point Mr.. Kennedy writes as
follows:
10 n,y Friends, the Public and Jasper Loan
Association Stockholders:
Being entirely Frustrated by the reports which
have been published concerning me, am physi-
cally unable TO reply thereto at present, but
hope soon TO do So to the satisfaction of every
one. DANIEL X. KENNEDY
MR. KENNFDY's CONDITION.
Mr.. Kennedys intimate friends say that
he is now in a serious condition physically
He requires the almost constant care of a
physician and his nerves are SO completely
unstrung that he is unable to make any
statement concerning his troubles, though
he talks of nothing else One gentleman
who had seen him said that he had stated,
however, that he had an understanding
with the committee that the matter should
be kept within the Board of Directors and
l. ~ l,,l a..
shape to pay all that he owed as soon as the
committee discovered what that is. He
charges that faith has been broken in tell
ing the stockholders of the matter and says
that If it had been left quiet the association
would have lost nothing and his reputation
would have been saved. Mr. kennedy's
friends refuse to believe that he was
prompted by any dishonest motive in using
the money of the association, but think that
he was unwise in taking it to pay the debts
imposed upon him by another, even though
he thought he could pay it back in full.
They cite as evidence of the correctness of
their belief that he did not mean to steal
that he made no attempt to cover up his
tracks but, on the contrary, neglected the
books TO such an extent that he must have
known that his detection was certain.
THE STOCKHOLDERS VIEWS.
The stockholders. however, view the mat
ter in another light. The Office of Treas
urer Wood was besieged with them All
day long they sought his office either to
learn some of the particulars of the affair
or to bring in their receipts or both They
are worried and very anxious They fear
that all the money they have paid in will be
lost to them, and they are uneasy
about it. Some of them roundly
abuse both Kennedy and the
Board of Directors. Others confine their
70 nd Nf
there were plenty of II told you sos
and dozens who "knew all along that there
was something wrong with Kennedy"
There are only a few who would consent to
prosecute him, bnt they all feel it their
privilege to roundlv abuse him The only
thing developed in the case yesterday was
the fact that the deficit cannot be even APP
proximated. A number of members brought
IN receipts which had not
been credited upon the books
and how many of these there are now out
standing nobody knows. There will be no
loss to the individual stockholders on ac-
count of Mr., Kennedy to give them credit
for the money paid in, because the associa-
ton is bound TO honor his receipts, and the
association is capable of standing a heavier
loss than this will probably prove to be.
WHAT THE EXPERT WILL DO.
The books of the concern are now lying in
Treasurer Woods office waiting for the ex-
pert who is to try and untangle them, and
nothing will be done with them until that
expert takes them in hand. Mr.. Woods said
yesterday that no expert would be able to
find out what the condition of the accounts
should be because of the lack of entries
If entries had been falsely made there
might have been d chance of correcting
them, but inasmuch as none at all had been
made for months there was nothing in that
line for an expert to work on. What he
will do is to get in all the receipts of mem
bers and figure out, theoretically,
what the books ought to show
On account of the method of keeping
the books of n loan association that can be
done and when it is it will be of great value
in strengthening up the affairs of the COM
pany and i'll determining what its loss is.
There is no doubt, as Mr.. Woods thinks, but
that the loss will greatly exceed kennedys
assets, for he thinks the committee has al
ready discovered greater deficit than his
property will cover, and the addition TO the
already discovered loss of the uncredited re-
ceipts will swell the net loss greatly.
The stock of the association was very much
deprecated by the announcement of the
deficit. On Friday it was quoted at $3.50,
but sold at $40. Yesterday it could have
been had in quantities at from 1865 to
S3T0 1t is expected that the decline will
continue to-day, and that the stock will be
very weak until the association can make q
statement of its condition.
HOW TO PREVENT DEFICITS.
The effect of this affair has been to make
the stockholders of similar associations feel
very shaky, and the treasurers of more than
one of them paid personal visits to their
bondsmen and directors to inform them
that the affairs of their respective associa-
lions were in order and subject to examina-
ton. The effect of "A defalcation is always
to shake the confidence of people in men
holding positions of trust if they have any
thing at stake and the effect in this case
has been in nowise different
There are quite a number Of loan associa
tions in this city. A gentleman speaking Of
the advantages of investing in them, saiC
that if three things are done, there is littl,
chance for Treasurer or any other officer
of loan association to make improper us,
of its money:
/. When a loan is made on his stock by
member, the scrip should be marked, dor
rowed on by the Secretary, when h,
draws his warrant on the Treasurer, ant
the scrip thus marked should be pinned {,
the warrant when it is presented to tn
President for his signature
2. In case of transfers the Presiden
should, with his own hand mark the scril
which is surrendered Cancelled" before at
taching his name TO the new scrip.